The Economist magazine House-Price Indicator shows Chinese home prices are the world’s best bargain relative to disposable income:
Affordability has never been better:
The index also showed that Chinese home prices are high relative to rents. Property owners can accept low rents because carrying costs are extremely low. China has no property taxes and apartment common charges are minimal. Comparing two Xinyuan developments:
- At Beijing Xindo Park monthly property management charges are 3.13 RMB/sqm, equivalent to $0.045 per square foot
- At Williamsburg Oosten monthly common charges and tax range from $0.81 to $1.72 per square foot
